Recommendation

Unlock this content

It may sound a little surprising at first, but analysing brakes company Pacifica is in many ways more like assessing a mining company than an industrial stock. If a mining company doesn't successfully explore or somehow acquire new deposits, its business will slowly whittle away as existing resources are extracted from the ground. Likewise, Pacifica must spend a stream of its current earnings on designing the next generation of automotive brake products. And once that's done, it must invest in the plant and machinery capable of producing these new products. And if the company fails to do...

InvestSMART Publishing Pty Ltd holds Australian Financial Securities Licence (AFSL) 282288.
The content of this website is general in nature and does not take the personal situation of any user of this website into consideration.
A user of this website should seek financial advice specific to that user’s situation before making any financial decision.
Past performance of any security or financial product is not a reliable indicator of future performance. InvestSMART Publishing Pty Ltd
encourages users of this website to view investing as a long-term pursuit.